Ratings Methodology for Direct Auto Loans

Our comprehensive rating system for auto loans offered directly from a lender considers a range of factors.

20+ lenders reviewed

4 profiles assessed

60+ data points analyzed

Methodology, broken down by category

NerdWallet reviews and rates purchase loans for new and used vehicles, refinance loans and lease buyout loans. Our overall ratings are weighted averages of ratings in the following categories:

5.0

Overall score

Loan flexibility includes items like the number of loan terms and ability to have a co-applicant.

Affordability (30%)

Loan affordability considers factors such as rates, fees and rate discounts for automatic payments.

Transparency (25%)

Transparency covers matters such as how easy it is for borrowers to find rates, loan terms and eligibility.

Customer experience (25%)

Customer experience includes how easy it is to apply, customer service hours and ways to reach the lender.

Variations in scoring and weighting

Our scoring varies some for different types of auto loans. For example, for purchase loans we look at any limits on where a borrower can buy a vehicle. For refinancing, we include how soon a borrower can refinance. For this reason, a lender's star rating can differ by product.

We may adjust a lender's rating up or down based on the following:

Any government action in the past two years for practices that could harm auto loan consumers.

Any unique product features (not scored in other categories) that benefit consumers.

Any aspect to the loan or servicing that would have a negative impact on a borrower.

Data collection and review process

We survey 25 companies that offer new and used car loans, auto refinance loans and lease buyout loans. These companies include direct lenders and aggregators. Aggregators don't have their own loan products. Instead, they match borrowers to outside lenders.

Surveys for both groups of lenders are similar, although some questions differ. Both surveys include more than 60 data points.

Our team checks lender websites to confirm survey responses when possible. We also follow up with company representatives as needed. At least one writer and an editor verify facts in every lender review to ensure accuracy.

Data accuracy

Auto loan reviews are completely updated every 12 to 18 months. Our team also updates data as needed through the year, such as rate changes, new features and star ratings.

The review team

The auto loans review team is made up of writers and editors who cover a range of auto loan topics. Our auto loan writers and editors have over 30 years of combined experience in finance. Each team member adheres to NerdWallet’s strict guidelines for editorial integrity.